New York CNN  —  Stocks fell Tuesday morning as investors continued to worry that the Federal Reserve could cut interest rates later than expected. The Dow Jones Industrial Average dropped 418 points, or 1.1%, on Tuesday after declining more than 500 points at its lows. That means the blue-chip index has sunk roughly 800 points during the first two days of the second quarter. On Tuesday morning, the S&P 500 fell 1.1% and the Nasdaq Composite lost 1.5%. The Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, rose 2.5% for the 12 months that ended in February, a faster clip than January’s price increase. Fed Chair Jerome Powell last Friday warned that rate cuts won’t be imminent. “We don’t need to be in a hurry to cut,” he said at an event hosted by the San Francisco Fed. That send bond yields rising. By Tuesday, the 10-year Treasury yield was at 4.38%. Traders pulled back their expectations for a rate cut in June to about 62% from more than 70% a week earlier, according to the CME FedWatch Tool. This is a developing story and will be updated.